Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 155

From a fraud risk management perspective, which of the following best explains the need to review a vendor master file for duplicates or similar names?

Answer options

• A. To mitigate the risks related to the lack of segregation of duties.
• B. To mitigate the risks related to invoice authorization process.
• C. To mitigate the risks related to quality of data in vendor master file.
• D. To mitigate the risks related to payments to unapproved bank accounts.

Correct answer: C

Explanation

Option C is correct because reviewing the vendor master file for duplicates or similar names helps ensure the accuracy and integrity of the data, which is essential for effective fraud risk management. The other options address different aspects of risk but do not specifically relate to the quality of data in the vendor master file.